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Roubini's RGE Responds to Reports Firm Is For Sale

Roubini Global Economics, the firm run by economist Nouriel Roubini, said in a letter to clients obtained by CNBC that the firm is not in need of capital or being sold.

Nouriel Roubini
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"Recent press reports have suggested that RGE is experiencing difficult financial conditions and is being sold. These reports are wrong. RGE is strong, stable and independent," the note said, adding that the firm was "well capitalized" and remained "of high value to its clients."

CNBC's David Faber first reported Tuesday that potential buyers had been approached by an investment bank conducting an auction for the firm.

Bidders have been told to submit a range of what they'd be willing to pay, although it is not evident there are any suitors, according to people familiar with the matter.

Roubini’s letter, which addresses the financial health of the company, does not completely rule out a future sale and does not deny reports that an auction is underway.

According to people who have seen the offering document, the firm projects revenues of about $14 million this year and will post a loss of approximately $2 million, and projects eight percent revenue growth into next year followed by 40 percent revenue growth in 2013.

Roubini could not be reached for comment but a spokesman for RGE asserts the firm "has tripled its revenue since 2008 and has reported record sales for September."

RGE emphasizes its continued focus on growth and expansion of research offerings citing the firm just opened an office in India and hired nine people.

RGE currently has 85 employees and is a subscription-based service providing economic commentary to a wide range of clients including corporations. Almost two-thirds of those subscriptions come from active financial institutions including asset managers, hedge funds, pension funds, family offices and investment and commercial banks, according to the firm.